UK Retail Sales Fall As Sterling Exchange Rates Fall

By Tom Higham

23rd May, 2012

Figures from the Office for National Statistics (ONS) have fallen by 2.3% in April mainly because of a fall in petrol sales which were down 13.2% last month. As mentioned in yesterday’s blog Marks and Spencer’s sales figures were down and we mentioned that this could be a sign that the rest of the UK High Street will have weak figures and this was the case.

Also this morning we have had the Bank of England’s latest set of minutes from their last interest rate decision where it was shown that a hold in interest rates was a unanimous decision and that the vote to keep Quantitative Easing (QE) on hold was 8-1 in favour. This news, coupled with the Retail Sales figures has led to Sterling Euro exchange rates falling slightly as it is a further sign that the UK economy is still under significant pressure and it is only the fact that Europe’s economy is in a worse position that we are holding at these high levels for clients looking at transferring Pounds to Euros.

Meanwhile in Europe Christine Lagarde who is head of the IMF stated that Greece has “more to do” in order to resolve its current financial issues. Greece will remain in the headlines for the next month or into the lead up to the elections which are due on the 17th June. This date could be crucial as it may be the date that decides whether Greece remains in the Euro or not, so to be kept informed of all the latest news in the lead up to this date keep reading our blog, or alternatively call through to our trading floor on 0800 328 5884 and one of our experience currency broker will be happy to keep you informed of all the latest news.

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